Markets rally in early trade amid optimism around US-China trade talks

Sensex and Nifty closed higher for the fourth day in a row on Monday following a rally in global markets and upbeat investors' sentiment after the RBI’s jumbo 50 bps rate cut.

Mumbai: Equity benchmark indices Sensex and Nifty began the trade on an optimistic note on Tuesday in-tandem with a rally in Asian markets, optimism around US-China trade talks and foreign fund inflows.

The 30-share BSE Sensex climbed 235.58 points to 82,680.79 in early trade. The 50-share NSE Nifty went up by 96.1 points to 25,199.30.

From the Sensex firms, IndusInd Bank, Tech Mahindra, Infosys, UltraTech Cement, HCL Tech and NTPC were the biggest gainers.

Bajaj Finserv, Asian Paints, ICICI Bank, Eternal, HDFC Bank and Titan were among the laggards.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng were trading in the positive territory.

US markets ended mostly higher on Monday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,992.87 crore on Monday, according to exchange data.

"Nifty is likely to consolidate in the 24,500-25,500 range in the near-term. There are no short-term triggers to take the Nifty beyond the upper band. Some profit-booking pulling the market slightly down is likely. But ample liquidity will ensure that dips will get bought, helping the market to consolidate," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

From the global perspective, market participants will be keenly following the progress of trade talks between the US and China, he added.

Global oil benchmark Brent crude climbed 0.28 per cent to $67.23 a barrel.

On Monday, the 30-share BSE Sensex climbed 256.22 points or 0.31 per cent to settle at 82,445.21. The Nifty surged 100.15 points or 0.40 per cent to 25,103.20.